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Auto sales in China returned to double-digit growth in January due to a low base in the world's largest car market, data from an industry association showed today.

About 2.8 million vehicles were sold in January, up 11.6 per cent year-on-year, according to the China Association of Automobile Manufacturers (CAAM).

The growth was faster than the increase of 0.1 per cent in December and 3 per cent in 2017, state-run Xinhua news agency reported.

The CAAM attributed the surge to a relatively low base in the same period last year, noting that sales were down 8.2 per cent from the previous month.

China's auto sales increased 13.7 per cent in 2016, but the market was under pressure last year from government policy adjustments such as sales tax hikes.

New energy vehicle (NEV) sales were strong in January, soaring 430 per cent year-on-year to reach about 38,000 units, according to CAAM.

The robust growth came as China intensified efforts to encourage the use of NEVs to ease pressure on the environment, by offering tax exemptions and discounts for car purchases, and ordering government organisations to buy more new energy vehicles, the report said.

China remained the world's largest auto market in 2017, with some 28.88 million vehicles sold, according to CAAM.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)